Swedish carrier backs out as first Bombardier CSeries operator

TORONTO Aug 29 (Reuters) - Bombardier Inc's
troubled aerospace business faces more upheaval as a Swedish
carrier backed out as the first customer to start commercial
flights with its new CSeries jet and the Canadian firm said more
senior aerospace executives will be laid off.

Malmo Aviation, owned by Sweden's Braathens Aviation, was
slated to be the first CSeries customer to take delivery of the
new jet in the second half of 2015, but the airline said on
Friday that will no longer be the case. It cited worries about
further delays after a May engine failure grounded the jets.

"It has subsequently emerged that this may cause another
delay to the CSeries introduction," Braathens said in its
second-quarter 2014 report.

"We have informed Bombardier that we will not assume the
role of formal launch operator of the aircraft type."